NEWSLETTER

I know I have talked at length about having alternative investments within your portfolio – the 2018 year was a prime example of why we continue to hold these strategies. In 2018, Next Edge private debt returned 9.6%, Dynamic Alpha Performance was up over 5%, and the Kensington Private Equity position was over 16%, all while the stock market was down, and interest rates continued to rise, causing stress on fixed income assets.Though we don’t see a recession happening in the immediate future, we remain cautious with our investment strategies. We continue to search out new opportunities that will protect us in down markets. Our strenuous due diligence process currently has us taking deeper dives into five different strategies after vetting dozens of others that did not meet our requirements. We look forward to what the future brings, and will continue to keep our clients updated on all of our progress and changes within the portfolios.1 https://lipperalpha.refinitiv.com/2019/03/sp-500-17q1-earnings-dashboard/

APRIL - JUNE 2019

PWM Quarterly uPdateYour Personal Portfolio Managers: Kevin Haakensen, CFA & Kevin Hegedus, CIMHollisWealth, a division of Industrial Alliance Securities Inc., PWM Private Wealth Counsel Insurance Advisors, Hollis Insurance

The stock market has put behind us the woes of Trade Wars between the US and China for the moment, as well as continuing to kick the can down the road on Brexit. Because of this uncertainty still being unresolved, it has caused both the US and Canada to put a halt on raising interest rates for the time being. Since the inception of the New Year, we have seen the stock markets recover their losses from

the latter portion of 2018. While this is all being based on geopolitical news, we like to look at what is happening fundamentally. In the fourth quarter of 2018 we saw over 69% of the S&P500 companies beat earnings’ estimates1, as well as 60% of those companies also beating on sales. This continues to show the US economy is still producing strong results. In addition, the economic data in relation to housing is better than expected, and unemployment remains at record lows. Because of this we still see the US continue to move ahead in the markets.

Sean Meshke, CFA, Portfolio ManagerHollisWealth, a division of Industrial Alliance Securities Inc., PWM Private Wealth Counsel.Insurance Advisor, Hollis Insurance

“When you establish a destination by defining what you want, then take physical action by making choices that move you towards that destination, the possibility for success is limitless and arrival at the destination is inevitable.” - Steve Maraboli

REMINDER: Our Saskatoon office is now located at 205-210 Wellman Crescent in Stonebridge. We are looking forward to serving you at our new location!

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IMPOrtaNt taX rePOrtING INFOrMatION FrOM yOur adMINIStratIVe teaM For all tax slips issued by HollisWealth – Industrial Alliance Securities, they have been mailed directly to you from our head office in Toronto. Should you wish to obtain copies, or see what has been issued on your account, your accountant can help you by logging into your myCRA account online. PLEASE NOTE: this is the only place that will have a complete listing of what has been issued under your Social Insurance Number. For this reason, we cannot provide your accountant with a list of everything that you will need for your taxes, as we do not have access to that information ourselves, unless we do your taxes at PWM Tax and Accounting Services*. Please note, we do not recommend filing your taxes until your accountant has already checked your CRA profile to ensure all T3s from mutual fund companies and T5013s for flow-through limited partnerships have already been received (they will be sent out in accordance with CRAs guidelines - as of March 30, 2018). This means that you should begin to see them in your mailbox near mid-April. For those slips issued by the mutual fund companies and sent to you directly, you will see them show up around the same time. If you wish to obtain copies from them,

here is the contact information for three of the most frequently used:Dynamic Funds 800-268-8186 CI Funds 800-563-5181 Mackenzie Financial 800-387-0614Please note that investments do change, and that can mean different slips from year to year. If you don’t see the same slips this year that you received last year, you may still have everything you need. Because the mutual fund companies have the mandate to report to CRA, we are not always aware of what they will be sending out either, and we do not have copies sent to us. Of course, if you have any questions, and are looking for a specific slip from a specific fund company, you are always welcome to call in, and we will be more than happy to call the fund company in question to see if you should be receiving anything for this tax. For all tax slips not issued by Hollis Wealth (i.e., mutual fund T3s/T5s), please be sure to check your mail regularly, as we are not made aware of, and do not receive copies of, what is sent out to you by the mutual fund companies.PLEASE BE AWARE: IF YOU ARE REQUESTING DUPLICATE HOLLISWEALTH – IAS INFORMATION, FOR ALL TAX SLIPS THAT CONTAIN A SOCIAL INSURANCE NUMBER (MOST T SLIPS), WE ARE NOT ABLE TO SEND THESE VIA EMAIL, AS IT IS NOT CONSIDERED A SECURE FORM OF COMMUNICATION. WE THEREFOR WILL NEED TO BE PROVIDED WITH A FAX NUMBER OR MAILING ADDRESS. AS A RESULT OF HIGH VOLUMES DURING THIS TIME, WE HAVE A STANDARD 48 HOUR TURNAROUND FOR ALL DUPLICATE SLIP REQUESTS, THOUGH THE REQUEST MAY BE COMPLETED SOONER IF TIME AND VOLUME ALLOW. WE THANK YOU FOR YOUR COOPERATION AND UNDERSTANDING.

“A good system shortens the road to the goal”.

- Ralph Waldo Emerson

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At PWM Private Wealth Counsel we work closely with our clients to grow, preserve and ultimately transition their wealth to the next generation. There is no greater satisfaction than helping our clients achieve financial security and peace of mind. We do this, in large measure, by offering a suite of services in-house and taking the time to create a comprehensive and tailored financial plan that helps reduce tax, manage risk and provide clarity over the long term.

Investment Management PWM has earned an outstanding reputation for product knowledge, continuously providing insight and sound advice

for our clients. Known for our proprietary products, in-depth knowledge of alternative investment strategies and our ability to develop responsible investment solutions; we understand the importance of continuously upgrading our knowledge and offering industry leading solutions.

Tax Minimization & Accounting The biggest impediment to creating and maintaining wealth in Canada may be taxation. For this reason, our team of experienced in-house Chartered Professional Accountants (CPAs) continually monitor changes in taxation in search of the best tax-savings strategies.

Risk Management Along the way, as you accumulate your wealth, your focus shifts from creating it to protecting it. We offer an expert assessment of risk designed to address your individual needs. Since the risks to creating and maintaining wealth come in many forms – including health, tax erosion, economic factors, market conditions – the solutions we offer do too. Our goal is to present you with solutions best suited to your tolerance for risk and your insurance needs. In this, we are always guided by a commitment to diligence, professionalism and objectivity.

The Power of a Plan While you may benefit from each of our areas of expertise, most clients combine our services to form a truly integrated plan that goes far beyond basic wealth management and puts all the pieces of the financial puzzle together.

the PWM dIFFereNce – a truly INteGrated aPPrOach tO PlaNNING

“Alternative investment strategies go beyond traditional ways of investing. Because alternatives tend to behave differently than typical equities and bond investments, incorporating them into a portfolio may provide better diversification, reduce volatility and risk, and enhance returns.

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www.portoliomanager.orgPortfolio managers are firms and people who manage investment portfolios on behalf of private clients, foundations, endowments and pensions. Portfolio managers are also known as:• Investment Counsel or Investment Counsellors• Asset Managers• Investment Managers• Wealth Managers

How a Portfolio Manager Can Help You?A portfolio manager develops a written agreement (usually known as an Investment Policy Statement or IPS) that takes into account your specific investment needs and goals. Your IPS is the basis upon which your portfolio manager selects an appropriate mix of investments and makes discretionary adjustments to your portfolio. You and your portfolio manager should meet at least annually to ensure your IPS is up to date and reflects your needs.

What are the Benefits of Working with a Portfolio Manager?Fiduciary Responsibility

Portfolio managers have a fiduciary duty to act with care, honesty and good faith, always in the best interest of their clients. Investment decisions therefore must be independent and free of bias. This results in a higher level of trust placed on portfolio managers.Professional Qualifications

As fiduciaries, securities regulation requires the highest level of education and experience in the investment industry.Personalized Management of Your Portfolios – Portfolio managers provide ongoing management of your investments based on your objectives and risk tolerance outlined in your IPS. You typically give authority to the portfolio manager to make investment decisions without getting prior approval from you for each transaction (called ‘discretionary management’).Fees

Portfolio managers charge a percentage of the investments they manage. This fee is transparent and generally much less than retail management and distribution costs, which are often embedded as a cost of doing business. It’s important to note that your money must reside at a

custodian financial institution for an extra layer of protection and safety and there is usually a small additional fee for this service. Fees are fully transparent on client statements and typically go down as a percentage of your portfolio as your assets grow. Fees are not paid by commission based on volume of buying or selling investments and are significantly lower than typical mutual fund fees.Investment Policy Statement (IPS) or Written Agreement

An individual written agreement will be established to set out how you will work with your portfolio manager, including ongoing communication, types of investments, reporting, fees, risks and other issues related to your own circumstances.Registration

Both the firm and the individual who is managing your investments are registered and monitored by provincial securities commissions.Legal Requirements of Firms

Firms registered as portfolio managers must meet strict financial reporting, capital and insurance requirements to further protect your investments.

the PWM dIFFereNce – What IS a POrtFOlIO MaNaGer?

“By understanding the unique needs of our clients, our in-depth knowledge of financial markets, tax minimization, and alternative investment strategies we have become one of the most highly regarded advisory teams in Canada. It is our honor and privileged to be your guide through all of life’s moments.

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PWM Private Wealth Counsel has accomplished what few other investment managers have. We have completed the demanding educational, experiential and organizational requirements to be approved as Portfolio Managers, placing us at the top level of all investment advisors in Canada. The reason we have made this effort is, after over 100 years of combined experience, we have learned that this approach to wealth management provides the most significant benefits and value to our clients.

Discretionary ManagementAs Portfolio Managers, PWM Private Wealth Counsel is empowered to buy and sell a wide range of investments without having to encumber investors with paperwork for each trade allowing us to respond very quickly to economic and market changes, and to capitalize on opportunities. Investors are freed from the day-to-day administrative process of wealth management to be able to focus on their business and leisure priorities.

Fair and EfficientInvestments are purchased and sold “in bulk”, which allows all participating investors to benefit simultaneously, resulting in timely, fair and equal treatment. This also enables PWM Private Wealth Counsel to achieve operational efficiencies, which helps to reduce costs to our clients.

Objective and UnbiasedPWM Private Wealth Counsel is compensated based on a set fee for managing assets, and not by a commission or by completing transactions. Therefore, we are able to select investments and perform trades objectively and free from bias. Ultimately, our performance and success as an organization are dependent upon the performance of the investments and the success of our clients.

Transparent and UnderstandableWe adopt simplified fee schedules and reporting process that emphasize transparency and clarity. Our clients gain comfort from being able to understand and see both the costs of our services and the results of our efforts.

A Broader Range of Asset ClassesAs Portfolio Managers, PWM Private Wealth Counsel is able to select from a much wider range of asset classes and investments than is typically available to most investors.

the PWM dIFFereNce – What IS a dIScretIONary MaNaGeMeNt?

PWM is pleased to announce that Kevin Hegedus and Kevin Haakensen have once again been recognized individually by Wealth Professional Magazine as one of the top 50 Advisors in Canada for 2019.

Often called pension-style asset management, we review and consider traditional asset classes, such as publicly traded stocks and bonds, along with numerous alternative investment opportunities. Investors enjoy truly diversified investment portfolios, with an asset mix that is expected to enhance returns and reduce volatility.

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Canadians have one of the highest rates of MS in the world, and on average, 11 Canadians are diagnosed with this unpredictable illness every day. We don’t know what causes MS, and we don’t have a cure. Yet.On Sunday, May 5, 2019, the team at PWM Private Wealth Counsel will be participating in the Saskatoon MS Walk because we want to support the world’s leading researchers discover the cause, treatments and cure for MS. Leading-edge research and support programs have improved the quality of life for people affected by MS. If you would like to make a donation, you are helping continue this incredible work. You can donate online, or by contacting our office and speaking with Jeremy Basset (j.basset@holliswealth.com). Thank you for supporting our MS Walk community. We wouldn’t be where we are today without your support.

PWM WalkS tO eNd MS

We offer a sincere thank you to our incredible clients and community for putting your trust in PWM Private Wealth Counsel. We are proud to be the 2019 recipient of the Consumers Choice Award in the Financial Planning Consultants Category.

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hOW INSuraNce PrOVIdeS SecurIty – aNd OPPOrtuNIty – FOr yOur BuSINeSSThe Link Between Your life, your family and your business deserve protection and if you’re a business owner, insurance can provide that security in a number of ways that may surprise you. It can also provide opportunity to help build assets – and your business – in a tax-effective way for your retirement or estate plan.

The Purchase of SharesIf you have one or more shareholders in your business, consider insurance when it comes to your Shareholders’ Agreement. In the event of the death or disability of a shareholder, having insurance on their life means immediate funding will be available to purchase the shares of the deceased shareholder and allow for a smooth transition that allows the business to continue to thrive. This method is a more cost-effective and convenient way to fund a buy/sell than borrowing money, liquidating assets, creating cash reserves, or using after-tax corporate profits. Without the funding, the deceased’s spouse or child could end up becoming a shareholder – an outcome which may not be desirable for all parties involved.A note about taxes: the life insurance benefit is received tax free by the corporation on the death of the shareholder and generates a credit to the Capital Dividend Account (CDA). The CDA can in turn be paid tax free to the estate of the shareholder. The CDA is a valuable tool that can be used in post-mortem planning to remove potential double tax on the death of the shareholder.

Collateral for a Business LoanIf you have a need for a loan to grow your business, your life insurance policy can help put you in the right position. Lenders (banks and other financial institutions that lend money to small businesses) often ask a borrower to

provide life insurance on the lives of the key shareholders or employees as a condition of lending. This means that your insurance policy will not only protect you, your family members, your corporation, and key persons to the business – it can also help enhance cash flow to your business.

Here are a few other options to think about:Key Person Insurance – common with small to medium businesses; this protects your business if you have one or more key people (e.g., you, another shareholder, a hired executive) whose death, disability or critical illness would harm

the financial health of the business Charitable Giving – corporate-owned insurance can be used as a tool to donate to charity: assign the policy ownership to the charity, use the policy to fund an estate gift, or use it to fund corporate gifting Estate Protection – insurance can be used to pay taxes due upon death thereby protecting the value of your estate which provides a tax-efficient way to enhance or create your estate Estate Equalization – it is common with family businesses that not all of the children want to, or are suited to, work in the business and the parents want all children to be dealt with fairly; life insurance can provide liquidity to achieve this fairness.

Stewart Gillott, Insurance AdvisorHollis Insurance

To learn more about how insurance can both provide protection, and help you build assets for your retirement or estate plan call Stewart at 306-975-9500. or visit www.pwmprivatewealth.com.

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We’re finally coming out of winter and heading into spring so its time to push everything green! Although this is a spring dish its still hearty enough for the cool evenings. Serve with a cool New Zealand or Australian Sauvignon Blanc.

Chef Simon Reynolds

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Pesto roast chicken breast, gnocchi and spring vegetables

Simon Reynolds is a British trained chef with over 20 years of experience running kitchen in high-end award-winning hotels and restaurants in the United Kingdom and Australia as well as Canada. Simon takes advantage of Saskatoon’s abundant local and seasonal foods when available, to prepare unique dishes from scratch. He specializes in modern British and French cuisine with Asian and Middle Eastern flavours.In addition to full catering and private chef services, Simon offers evening and weekend cooking classes for the complete novice to the food curious cook. Simon not only explains the dishes to you and how to cook them he gives tips and techniques at every twist and turn that can only be given after 27 years of Professional cooking. All classes offer varying levels of interaction so if you are looking for a specific type of class please inquire before booking. Simon’s classes are part demonstration and part hands on this ensures you go away with the correct information and ways of executing the dishes.

PESTO CHICKEN4 skin on boneless chicken breasts4 tbsp pestosalt and pepper

Take a chicken breast and lift up one side of the skin and place a tbsp of pesto underneath.Rub a little canola oil on the skin and place into a warmed frying pan and sear for 3-5 minutes then turn over.Place into the oven at 350F for 20-25 minutes then remove from the oven and allow to rest for 5 minutes.To assemble saute the gnocchi and cook any vegetables you want to serve while the chicken is cooking. Serves four.

GNOCCHI2lb Russet or Yukon Gold potatoes1.5-2 cups all-purpose flour2 whole eggsBlack pepper1/2 tsp salt¼ tsp nutmeg

(Don’t peel your potatoes cook with the skins on)Firstly wash your potatoes and place in a deep pot, cover with cold water.Bring to the boil then simmer for about 35-45 minutes until the potatoes are tender (Don’t poke them with a knife just press on each side and once they give they are cooked)Remove from the pot and wait 10-15 minutes until they cool slightly.Use a knife and carefully remove the skin, use a mouli or a ricer to push the potatoes through without over working them.Beat the eggs until well combined and season generously with black pepper, the salt and the nutmeg, add 1 cup of flour.Combine gently by hand until you have a slightly firm dough (you may need to add the remainder of the flour so its not too sticky)Take a golf ball size piece and roll into a 3 cm thick sausage.Cut those into 2cm pieces and place onto a lightly floured tray.Bring a pot of water to a boil and cook the gnocchi in 4 batches so not to overcrowd the pot.Cook for no more than 2 minutes and remove onto a tray.This can be made ahead of time.To finish I like to saute them in butter and olive oil then season with salt and pepper.

PESTO2 large handfuls fresh basil leaves1 handful arugula 3 cloves garlic200g grated parmesan regiano200g pine nuts75ml extra virgin olive oilsalt and pepper to taste Place everything in a food processor and puree till smooth, taste and adjust seasoning.

Chef Simon Reynolds

Cooking is all about people. “Food is maybe the only universal thing that really has the power to bring everyone together. No matter what culture, everywhere around the world, people get together to eat.” - Guy Fieri

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Don’t forget to check out our Money$ense Video Blog and Meshke’s Minute, which can both be found via www.pwmprivatewealth.comAs always, and to stay on top of both these new features as well as the Money Sense Radio Show, be sure to follow us on Facebook, Twitter, and LinkedIn.

OUTSTANDING INTERNET PRESENCETHE B2B BANK AWARD FOR MULTI-SERVICE ADVISOR OF THE YEAR

WINNER

Saskatoon 205-210 Wellman Crescent in Stonebridge. (306) 975-9500 or 1-800-652-7472

Prince Albert 25-11th Street East

Swift Current Unit 14-600 Chaplin Street

Visit our website at: www.pwmprivatewealth.com

This information has been prepared by Kevin Hegedus and Kevin Haakensen who are Portfolio Managers for HollisWealth® and does not necessarily reflect the opinion of HollisWealth. The information contained in this newletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors.

HollisWealth® is a division of Industrial Alliance Securities Inc., a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.

Insurance products provided through Hollis Insurance.

*HollisWealth does not provide any income tax preparation services and does not supervise or review any income tax returns.

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